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Thread: Transfer of property ownership advice required

  1. #1
    Craftsman
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    Transfer of property ownership advice required

    I looking for some advice regarding the transfer of ownership of a property with a family member.

    Can this be done via changing the name on the deeds or does it have to be a transfer of property.

    The property belongs to my mother at the moment.

    Any solicitors on the forum who can advise?

  2. #2
    Master Halitosis's Avatar
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    I'm an accountant rather than a solicitor, but recommend you consult a experienced solicitor - and possibly also an accountant depending on the circumstances.
    Probably way off the mark in your case, but often folk consider property transfer in relation to later life care home costs. Such is far from foolproof and sometimes works out considerably more expensive.
    It's not my area of expertise, but I understand local authorities now have improved powers to claim expenses in cases where a property has been transferred for no particular good reason or benefit to the individual, and where care home costs might be envisaged - especially if the ageing vendor continues to reside in the property.
    Tax implications include potentially reduced inheritance tax threshold through loss of main residence allowance, and even CGT if it becomes a second property.
    As I say - not suggesting such is the case for you, but good legal advise is worthwhile when it comes to big decisions and transactions.

  3. #3
    It would definitely depend on the circumstances.

    We’ve had advice for transferring property between family members, and I’ve transferred a property in my name to another family member - but advise for your specific circumstances would be my recommendation. Unless you just want generic information on the process, without considering all the potential implications and liabilities.
    It's just a matter of time...

  4. #4
    Craftsman
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    Thank you for the suggestions. Have contacted a solicitor for specific advice.

  5. #5
    Master
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    You will need a solicitor and they can draw up a deed of gift. Any gifting will likely create CGT exposure and then you need the gifter to survive 7 years for IHT avoidance.

    Also if this is to avoid care home fees the local authorities may consider this a wilful deprivation of asset and look to claw back.

    Bottom line talk to both an accountant and solicitor. All depends on your objectives.

  6. #6
    Craftsman DONGinsler's Avatar
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    I would consult a real estate attorney and ask about an Alter Ego Trust if the UK has probate fees

    DON

  7. #7
    If it’s mortgage free it’s a relatively straight forward process. Most conveyancers can do this for you. You should take tax advice or look up potential implications, notably stamp duty and possibly inheritance tax.

  8. #8
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    No stamp duty if no consideration being paid, but a gift to family member is a market value disposal for cgt and a PET for IHT.


    Sent from my iPhone using Tapatalk

  9. #9
    Master
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    The valid point Montello makes about ‘Also if this is to avoid care home fees the local authorities may consider this a wilful deprivation of asset and look to claw back.’

    My understanding is that councils can go back indefinitely & claw back assets for care?

  10. #10
    Quote Originally Posted by g40steve View Post
    The valid point Montello makes about ‘Also if this is to avoid care home fees the local authorities may consider this a wilful deprivation of asset and look to claw back.’

    My understanding is that councils can go back indefinitely & claw back assets for care?
    Out of curiosity how they claim back assets you no longer own?

  11. #11
    Master draftsmann's Avatar
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    Quote Originally Posted by DONGinsler View Post
    I would consult a real estate attorney and ask about an Alter Ego Trust if the UK has probate fees

    DON
    It’s unfortunately not as simple as that as the UK tax regime for trusts is both complex and in some respects punitive, and laden with pitfalls for the unwary. It’s an area of work I’ve been involved with for my entire working life although I’m in the process of winding down and retiring. I’ve had to advise numerous clients that unfortunately what works in one jurisdiction doesn’t necessarily work in another.

  12. #12
    Master
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    Quote Originally Posted by robert75 View Post
    Out of curiosity how they claim back assets you no longer own?

    Maybe claw back was the wrong expression, the point being that if you have deliberately given away asset then you may still be assessed as having them so your action achieves nothing and may actually create a major headache.

    See. https://www.ageuk.org.uk/information...ion-of-assets/

    Obviously this may not be relevant to the OP.

    Edit. This may mean that you have to ask for your assets back from the person you have gifted them to to pay for care.

    The reality is state funded care is awful so better to hang onto your assets to be able to choose your care providers.

  13. #13
    Master
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    Also … if the property being gifted is the primary dwelling I believe it is CGT exempt but if they continue to derive the benefit I.e. by living there that can cause problems and you may need to charge rent.

    As above, get some advice.

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